Starting a business for the right reasons?
There are a number of reasons why people decide to make the move from employee to running their own business. Starting and running a business involves a great deal of hard work and commitment so understanding your reasons for doing it and remembering them will both motivate you and help to keep you focused. In addition to this, starting a business for the wrong reasons could be a recipe to fail before you even get going!
Here are some of the common reasons that people start a business:
Being In Charge Of Your Own Income
Many people who are successful in their careers start to ask the question ‘why am I doing all this work to make money for someone else when I could profit from it directly?’ In principal this is a valid point and if you combine good skills with a strong amount of business acumen you could be better off financially. However, you should also consider the benefits of a regular salary during leaner periods. When working for yourself, if you don’t make money, you don’t earn. It is also worth mentioning that just because you have been successful in your chosen career doesn’t mean that you will be good at running a business. Many people fall at this hurdle, don’t let that be you!
It is easy when working for an employer to doubt their decisions and think your ideas would work better and running your own business gives you ultimate control over the direction of the company as well as the decisions made. It is worth giving some consideration to your character. Are you a good decision maker? Are you impulsive or do you take a long time to mull things over? Sometimes difficult decisions have to be made when running a business so if this is something you will struggle with, maybe it would be worth either staying in an employed role or considering a business partner.
You Are Responsible For Your Own Success
When you run your own business, the success or failure of the business rests with you and the decisions you make. This is a big responsibility, especially if you have employees depending on you for their livelihood but equally can offer great reward if you get it right. All of your successes, however small, will provide a major sense of accomplishment.
People often decide to start their own business to suit their work/life balance. For example, a mother returning to work after having children may find that running her own business can be more flexible to fit around school hours. Please consider though that running a business involves a great deal of discipline and if you are easily distracted by daytime television for example, your earnings will reflect this.
In addition to the reasons above, make sure that the research element of your business plan covers the business reasons why your business will work.
Examples of some of the things you should ask are:
- Do you have a sound business idea with a viable target market?
- Is there a gap/place in the market for your product/service?
- Is the pricing structure right?
- Is there enough need/demand/desire for your product/service to make it work?
Also take into account your personality and the more emotional side of things:
- Are you prepared to work hard to make your business succeed?
- Are you well organised, disciplined and able to make decisions?
- Do you feel passionate about your potential business?
- Will it suit your lifestyle and earnings requirements?
If the answer to any of these questions is ‘no’, don’t go any further without addressing the issues or you will very quickly run into problems.
If you’re starting a business make sure you get the most from it that you can
Category: Business Planning